Internet Marketing Trends Report 2012

TABLE OF CONTENTS
Executive Summary 2
United Kingdom
Internet Usage 3
Online Activities 4
Advertising Spend 5
Internet Advertising 6
Paid Search 7
Display Advertising 8
Mobile Marketing 9
Social Media 10
Europe
Internet Usage 14
Internet Advertising 15
Social Media 16
France Overview 17
Source of all statistics:
Spain Overview 20
Belgium Overview 23
About WSI 26

UK & EUROPE Executive Summary

Despite Economic Turmoil, Digital Ad
Spending on the Rise; Mobile
Marketing to Spike in 2012

As Europe continues to struggle with a stubborn sovereign debt
crisis, the region’s online ad spending is actually prospering,
despite the difficult general economic environment. Given the
harsh fiscal climate, however, total media ad spending is not
expected to rise substantially. As a result, Europe’s still burgeoning
online ad spending market will take a greater share of total ad
spending and remain one of the only growing forms of ad spend.
Overall, market conditions in Europe highlight the importance of
and place more emphasis on forms of Internet marketing and
communication.

In similar fashion to the past few years, Internet advertising
formats such as paid search, display ads and social media
marketing experienced an increase in spending among UK and
European Marketers in 2011, continuing the shift away from
offline advertising like newspaper, radio and television. Recent
statistics suggest that this trend will continue through 2012 and
beyond.

A relative newcomer to online advertising, mobile marketing
exploded in 2011 and all signs indicate that it will become one of
the leading forms of Internet ad spending in the very near future.
The use of smartphones and tablets is increasing so rapidly that, in
most European countries, over 90% of the population operates a
mobile device. As people get more comfortable searching and
interacting on the go, the Internet’s landscape is once again
changing, and mobile marketing is certainly at the forefront.

This Internet Marketing Trends Report is a brief summary of the
current online marketing stats and patterns in the UK and Europe,
as well predictions for the next few years. Specifically, the report
covers Internet usage and penetration, advertising spending,
Internet marketing, social media trends and activities and the
expansion of mobile marketing.

Copyright ©2012 by Research and Management Page 2
WSI Internet Marketing Trends Report 2012

UNITED KINGDOM Internet Usage

UK Internet Users by Age
and Gender

 The majority of the UK’s online
population is between the ages of 16-
44 (57%)

 17% of UK Internet users are
between the ages of 16-24, 20% are
between 25-34 and another 20% are
between 35-44

 The third highest share of UK
Internet users is the 45-54 age bracket
at 19%

UK Internet Users and
Penetration

 The UK’s Internet use is still on the
rise, with a projected increase of 1.2
million people from 2011 to 2012

 By 2016, the number of UK Internet
users is expected to climb to 50.4
million, which would be an increase of
9 million users over the five year
period between 2011-2016

 The percentage of the UK’s overall
population who uses the Internet is
also increasing; by 2016, almost 80%
of the UK is projected to be using the
internet


UNITED KINGDOM Online Activities

Online Services Used by
UK Internet Users
Facebook is the most popular online
activity among Internet users in the UK
(65% of respondents)

 YouTube is the second most popular
online activity among Internet users in
the UK (50% of respondents in
February 2012)

 Twitter is the distant third most
popular online activity among Internet
users in the UK (only 23% of
respondents in February 2012)

 Other popular online activities
among Internet users in the UK include
MoneySavingExpert.com, Windows
Live, LinkedIn and Google+

Top Ten Websites Among Top 10 Websites Among UK Internet
UK Internet Users Users, Dec 2011
12
 Google UK is the most popular site in 10
8
the UK with 9.67% market share of 6
visits in December 2011 4
2
0
 The next most popular site is %
Facebook (7.58% share)

 YouTube ranked in third place
(3.41%) and eBay UK in fourth (1.81%)
Source: Experian Hitwise, Jan
 Other sites listed in the top ten
include Windows Live mail, MSN UK,
BBC News and Yahoo! UK and Ireland

Copyright ©2012by Research and Management Page 4

UNITED KINGDOM Advertising Spend

UK Ad Spending, by
Media
 Ad spending in the UK is heading into
a period of low growth (only 2%
change is expected). Internet ad
spending in the UK in
2012, however, is projected to climb
by 11.3% over 2011’s final ad spend of
£3,772 million

 Conversely, press ad spending, which
has been on a steady decline since
2009, is expected to drop from £3,307
million in 2011 to €3,012 million in
2012 (a 9% drop). Radio ad spending is
also projected to take a 1% hit in 2012

 TV and cinema ad spending project
to hold steady, with 1.5% and 0%
growth rates

UK Display Ad Revenue
Share, by Industry
 According to the Interactive
Advertising Bureau, the finance
industry led 2011 in online display ad
revenue, with a 15.6% share

 Ranked a close second in online
display ad revenue for 2011 was the
consumer goods industry, which held a
14.5% share

 Other industries with a significant
share of 2011’s display ad revenue
included entertainment and the media
(12.4%), travel and transport (10.3%)
and retail (9.7%)


UNITED KINGDOM Internet Advertising

Steady Increase in Online
Ad Spending
UK Online Ad Spending, 2010-2014
Source: eMarketer, Nov (£ billions and % change)
 eMarketer predicts that £5.09 billion 2011
7
will be spent advertising online this 6.72
year in the UK, a 12% increase over 6 6.2
5.
2011 5
4.5
4 4.1 10%
11%
 According to the same study, £6.22 12%
billion will be spent advertising online 3 11%
15%
next year (11% increase) 2
1
 This growth is expected to continue
into 2014, when £6.72 billion will be 0
spent advertising online (an increase 2010 2011 2012 2013 2014
of 10% over 2013)

Internet Advertising to
Take Lead Share of Total
Projected UK Advertising Spend Share, by
UK Ad Spend Media, 2012 (% of total)
3.5
 35% of total advertising spending in 1.5% Internet
the UK is expected to be allocated 7%
Press
toward online advertising in 2012,
which would give it the leading share 35% TV
by 7% over TV (28%) 28%
Outdoor
25% Radio
 Press is expected to garner the third
largest share of ad spend (25%), while Cinema
the remainder will be divided among
outdoor, radio and cinema


UNITED KINGDOM Paid Search

Paid Search Remains
Leading UK Online Ad
Spend Format
 Paid search advertising is expected
to increase at a compound annual
growth rate (CAGR) of 9.7% over the
next few years and will climb to nearly
$6 billion by 2015

 In 2012, paid search advertising
spend is projected to reach $4.45
billion, which would be an 11%
increase of 2011

 Overall, paid search advertising will
continue to hold more than a 50%
share of total UK online ad spending.
By 2015, the next closest share is
expected to be held by display
advertising (a 27% share)
Industries Using Search
Advertising in the UK
 UK’s paid search spending share is
still dominated by one device, with
computers holding a share of over
90%

 A noticeable trend is occurring as
both smartphones and tablets are
rapidly taking an equal portion of the
paid search spending share away from
computers

 As the overall usage of smartphones
and tablets steadily rises, more
searches will be conducted on these
devices, which means the trend will
likely continue into 2012 and beyond


UNITED KINGDOM Display Advertising

UK Continues to Spend
More on Display
UK Display Ad Spending Share, 2011-2015
Advertising Source: eMarketer, Nov (by %)

 According to eMarketer, display ad’s
27
spending share in the UK will
26
experience small but steady growth in
2012, rising from 23.7% to 24.8% 25
24 (%)
 Display ad spending in the UK is 23
expected to increase its share all the 22
way to 26.6% by 2015, nearly a full 3% 2011 2012 2013 2014 2015
jump from 2011

Video Advertising
Experiences Rapid
Growth

 Display – more specifically, video
advertising – will experience the
highest growth rate among all UK
online ad spending by a significant
margin

 In 2012, eMarketer forecasts that
video advertising spend will
experience 70.7% growth, which is
more than 50% higher than the
second highest projection (email at
17.9%)

 The growth of video advertising’s
spend is predicted to drop slightly over
the next few years, but its expected
growth rate of 45.2% for 2015 is still
extremely high and indicative of a
powerful trend

UNITED KINGDOM Mobile Marketing

Mobile Advertising Takes
a Larger Budget Share
 In 2011, 29% of UK marketers will
spend 6-10% of their total digital
budget on mobile advertising

 This is a considerable increase
over the 13% that said they would
allocate that share toward mobile
advertising in 2009

 13% of marketers will spend 11-
20% of their total digital budget
on mobile advertising this
year, while 6% of respondents
said that 21-40% of their budget
will be spent on mobile

Mobile Advertising
Spending Will Soar in the
Next Few Years
 Mobile advertising spending saw
a slight increase between 2009 to
2010 but is expected to jump
even more over the coming years

 In 2010, £49.8 million was spent
on mobile advertising in the UK, a
£12.2 million increase over 2009

 This number is expected to surge
by 2014 with an estimated £285
million to be spent on mobile
advertising in the UK


UNITED KINGDOM Social Media

More People Using Social
Networks in the UK
 This year, more than half of all
Internet users (52.6%) in the UK
will be on the social networks
totaling to 24 million people

 In 2012, 55.3% of the online
population will be using social
networking sites (25.9 million)

 27.7 million people will use social
networks in 2013 and by 2014,
almost 60% of the UK online
population will become social
network users

Social Networks Are Being
Used Several Times a Day
 Social network usage is becoming
a daily activity in the UK

 69% of UK social network users
said they use social network sites
several times or at least once a day

 21% of respondents use social
networks several times or once a
week, whereas 7% use social
networks several times or once a
month



Most Popular Social
Networks in the UK
 The #1 social network in the UK is
Facebook with 33.1 million
unique visitors, reaching 76.3% of
the population

 The 2nd most popular social site is
Windows Live with 6.8 million
unique visitors (15.8% reach)

 Twitter came in 3rd place with an
11.6% reach (5 million visitors)

 Other popular social networks
include LinkedIn (4th), MySpace
(5th) and Bebo (6th)

Trust for Social
Networks, Forums, Blogs &
Reviews
 19% of consumers between the
ages of 18-34 in the UK, Canada
and USA said they trust
information found on social
networks

 Meanwhile 14% of those in the
same age bracket said they trust
online forums, blogs, reviews and
chat rooms

 Overall, consumers agreed they
had more trust in social networks
(12% of respondents) than online
forums, blogs, reviews or chat
rooms (8% of respondents)


Brand Categories That
Social Media Users Are
Interested In
 23% of Internet users in the UK
are interested in engaging with
entertainment, film and music
brands using social media

 Clothing brands is the second
most popular category for social
media users to engage with (17%)

 16% of respondents said they are
interested in engaging with food
and drink brands, while 14% said
the same about sports brands

 Other industries mentioned in
the study are
retail, leisure, travel, technology
and cosmetics
Reasons People Follow a
Company or Brand Online
 Receiving discounts and special
offers is the most popular reason
people follow a company on social
media sites (50% of respondents)

 48% of respondents said they
follow companies/brands to
receive news about them

 Loyalty is another major reason
with 39% saying they follow a
company because they are a
customer of that brand



Companies Using Social
Media for Engagement
 According to eMarketer, more
than half of UK companies (53%)
use social media to a certain
extend to engage audiences

 More than a quarter of
respondents (26%) said they
aggressively use social media to
engage customers

Goals for Social Media
 Branding was a top objective for
UK companies to use social media
marketing in 2010, according to
72% of respondents

 53% of UK companies said they use
social media to drive more traffic
to their web properties

 Lead generation (35%) and direct
online sales (19%) were other
social media objectives

Social Network Ad Spend
 £185 million will be spent
advertising on social networks this
year, taking 5% of total ad budgets

 By 2012, marketers will spend
£275 million on social network
advertising (6% of total budget)


EUROPE Internet Usage

European Online
Population Growing
 In 2010, 429 million people were
online in Europe, and this year
this number is expected to
increase to 457 million

 This growth is projected to
continue next year, as 483 million
people in Europe will become
Internet users

 The European online population is
expected to reach 509 million in
2013, 530 million in 2014 and 547
million by 2015

Internet Users in Select
European Countries
 According to eMarketer, half of the
entire European population were
Internet users in 2010

 Internet user penetration in Europe
will increase to 55% this year and
58% in 2012

 As the European online population
continues to grow in 2013, user
penetration will increase to 61%

 This trend will continue as Internet
user penetration reaches 63% in
2014 and 65% in 2015


EUROPE Internet Advertising

Marketers Plan to Spend
More Advertising Online
 In 2010, 94% of respondents said
they planned to increase their
online advertising spending

 This year, 93% of marketers plan
to spend more money advertising
online over previous years

Online Ad Spend in Europe
 In 2011, $18.7 billion will be spent
advertising online in Western
Europe, while Eastern Europeans
will spend $3.2 billion on the same

 Next year, marketers will spend
$20.9 billion (Western Europe) and
$3.7 billion (Eastern Europe)
advertising online

The Growth Continues
 In 2012, online ad spending growth
will reach its highest in the last few
years (17.5% in Eastern Europe and
12.1% in Western Europe)

 Online advertising is expected to
increase by 12.9% and 8.1% in
Eastern and Western Europe
respectively in 2013

 By 2014, online ad spend growth
will reach 20.5% in all of Europe


EUROPE Social Media

Social Network Users in
Europe Increasing
 This year, 100.1 million people in
Europe will become social
network users (half of all
European Internet users)

 In 2012, 54.5% of Internet users
in Europe will become social
network users (112.1 million)

 By 2013, 123.1 million people will
use social networks in Europe
(58.2% of the online population)

 Social network users will continue
to grow to 133.1 and 141.9
million in 2014 and 2015
respectively

Top 2 Social Networks
 Facebook appears to be the #1
social network in major European
countries (60-96% of respondents)

 In the Netherlands, Hyves is the #1
social network according to 82% of
respondents

 The 2nd most popular social
networks in Europe range between
several region-specific sites such as
TuentiAdictos, Copains
d’avant, Nasza-klasa.pl and studiVZ


EUROPE France

Internet Ad Spending
Share in France
 TV and press advertising still take
up a fair share of total advertising
dollars in France

 Internet advertising took a 12%
share of total advertising budgets
in 2010, surpassing outdoor and
cinema ad spend, as reported by
the Interactive Advertising Bureau
France (IAB France)

Internet Ad Spend Grows
to Become Second Highest
 Internet advertising spending in
France has consistently increased
over the years and the trend will
continue in 2012

 According to ZenithOptimedia,
$2,125 million was spent
advertising online in 2009 in France

 As the 2nd strongest channel in
terms of ad spend, Internet
advertising will see $2,778 million
in spending in 2012, surpassing
magazine, outdoor, newspaper,
radio and cinema ads


EUROPE France

Online Ad Spend Increases
 eMarketer has similar predictions
regarding online ad spending
increases in France

 According to an eMarketer
study, this year, €2.05 billion will be
spent advertising online, a 7%
increase over 2010

 Online ad spend will increase by
8% in 2013 (€2.42 billion)

 eMarketer predicts that by
2014, €2.61 billion will be spent
advertising online in France

More Dollars Spent on
Paid Search and Display
 In 2010, $1,510 million was spent
on paid search advertising in
France, while $894 was allocated
toward online display ads

 This year, paid search ad spend
will reach $1,624 million, while
display ad spend will decrease
slightly to $870 million

 However, display advertising will
rise again in 2012 to $920 million

 Next year, social media and
mobile advertising will increase as
well to $162 and $118 million
respectively


EUROPE France

Social Network Users in
France Increases
 20.4 million people in France will
become social network users this
year, a 14.6% increase over 2010

 This equates to 51.2% of all
Internet users and 31.3% of the
country’s entire population

 In 2012, the social network
population will increase to 22.7
million (11.4% change and 55.9%
of all Internet users)

 By 2015, an estimated 43.9% of
the country’s entire population
(29.1 million people) will become
social network users

Most People Use Social
Networks on a Daily Basis
 Visiting social networking sites is
becoming a daily activity in France

 The majority of social network
users (68%) said they use social
sites several times or once a day

 23% of respondents said they use
social networks several times or at
least once a week

 Only 9% of users said they visit
social networks several times or
once a month


EUROPE Spain

Internet Advertising
Surpasses Newspaper Ad
Spend in Spain
 Internet advertising spending will
almost double over 3 years from
$916 million in 2009 to an
estimated $1,674 million in 2012

 Next year, online advertising will
surpass newspaper ad spend by
$122 million, making it the 2nd
strongest advertising channel

 Overall, more money will be spent
on Internet advertising over
newspaper, radio, magazine and
outdoor advertising

Online Ad Spend
Continues to Increase
 Similarly, eMarketer reports that
Internet advertising spending will
increase by 10% next year to reach
€0.88 billion

 According to the same
study, online ad spend will rise
again by 8% in 2013 to reach €0.96
billion

 By 2014, €1.02 billion will be spent
on Internet advertising, a 7%
increase over the previous year


EUROPE Spain

Paid Search and Display
Ads Remain a Focus
 This year, marketers in Spain will
allocate $589 million toward paid
search advertising and $289
million for online display ads

 Next year, both numbers are
projected to increase to $672
million for paid search and $376
million for display ads

 Interestingly, mobile ad spending
will see a considerable increase
next year, from $78 million in
2011 to $121 million in 2012

 Social media advertising will also
see increase though incrementally

Industries Leveraging
Online Display Advertising
 14% of total display ad spend share
in Spain comes from travel and
tourism companies

 Companies within the telecom
industry take up a 13% share of
total online display ad spend, while
automotive companies consume a
12% share of the same

 Other industries using display ads
include educational
businesses, financial services and
public/private services


EUROPE Spain

Social Networking Grows
in Popularity in Spain
 This year, 15.5 million people in
Spain will use social networking
sites (33.1% of the population)

 In 2012, 2 million more people
will become social network users
and in 2013, another 2 million will
use social networking sites

 By 2015, almost half (46.9%) of
the population will use social
networks (22.6 million people)

Approximate Time Spent
on Social Network Sites
 26% of social network users in
Spain spent about 1-3 hours on
Badoo, while 37% spent the same
amount of time on Facebook in
September 2010

 23% spent 1-3 hours on hi5 and
MySpace each, while 35% spent 1-
3 hours on LinkedIn

 The majority of those surveyed in
this study (ranging between 32-
84% of respondents) spent under 1
hour on social networking sites in
general


EUROPE Netherlands

The Netherlands Has the
Most Daily Internet Users
in Western Europe
 According to eMarketer, 76% of
respondents in the Netherlands
said they use the Internet on a
daily basis, an increase over the
53% that stated the same in 2005

 This places the Netherlands as the
#1 country in Western Europe for
daily Internet usage with the UK
in 2nd place (66% of respondents)

Popular Online Activities
in the Netherlands
 As of September 2010, portals
were ranked as the #1 web
category among Internet users in
the Netherlands with an average of
433.7 minutes per visitor

 Instant messenger was another
popular online activity (410.8
minutes per visitor)

 Approximately 209 minutes were
spent on social networking sites by
a visitor during September 2010

 Email came in 4th place with an
average of 209 minutes per visitor


EUROPE Netherlands

Internet Ad Spend Will
Surpass TV Ad Spend
 Between 2005 and 2009, Internet
advertising in the Netherlands
drastically soared with an
increase of $954 million (from
$136 million to $1,090 million)

 Next year, online advertising
spending is expected to increase
again to $1,269 million surpassing
TV ad spending ($1,103 million)

 More money will be spent
advertising online over
TV, outdoor, radio and magazine
ads

More Money Will Be Spent
on Search Advertising
 This year, €356.4 million will be
spent on search advertising, a 3.2%
change over 2010

 Meanwhile, €294.6 million will be
spent on other Internet/digital
advertising in the Netherlands

 In 2012, search advertising
revenues will rise by 6.5% to reach
€379.7 million

 By 2013, an estimated €416.3
million will be spent on search
advertising (9.6% increase)


EUROPE Netherlands

Social Media Activities in
the Netherlands
 Among the online population in
the Netherlands, 47% said they
are members of a social network

 Meanwhile, 30% of respondents
uploaded a video to YouTube
during a one-month period

 5% of Internet users said they
update their social networking
status or profile daily

Social Networks Used for
Customer Acquisition
 Companies are finding successful
use of business social networks to
get new customers

 Almost half (48%) of companies in
the Netherlands said they
successfully use business social
networks for customer acquisition

 Other European countries
mentioned in this study include UK
with 33% of companies using social
media to acquire customers,
France (33%) and Spain (50%)


ABOUT WSI
WSI leads the global Internet industry offering best of breed digital marketing solutions to
suit the needs of multiple industries. The company has the world’s largest Internet
Consultants’ network across 80 countries with its head office in Toronto, Canada. WSI
Consultants have helped thousands of businesses realize their online marketing potential. By
using innovative Internet technologies and advanced digital marketing strategies, businesses
can have a WSI Digital Marketing Plan tailored to their individual needs to elevate their
Internet presence and profitability to new levels. With the support and cooperation of its
customers, franchise network, employees, suppliers and charitable organizations, WSI aims
to help make child poverty history through its global outreach program
(www.makechildpovertyhistory.org). For more information about WSI’s offerings and
business opportunities, please visit our website at www.wsiworld.com.

The information herein is the property of Research and Management Corporate (RAM). Each
WSI franchise office is an independently owned and operated business.

©2011 RAM. All rights reserved.

Internet Marketing Trends Report 2012

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Internet Marketing Trends Report 2012